Mallory Michaels, senior accountant for Trendy Fashions, has gathered the following balances from the company’s general ledger.

Required

Using the indirect method, prepare the cash flows provided by operating activities section of the statement of cash flows for 2020.

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December 31, 2020 December 31, 2019 Accounts Receivable $ 60,000 $ 65,000 Inventories 120,000 117,406 Prepaid Expenses Accounts Payable 4,500 3,900 50,378 51,000 Accrued Liabilities 12,000 14,000 Income Taxes Payable 2,700 2,500 Net Income 710,000 Depreciation Expense 65,000 Gain on the sale of land 15,000